IN REPLY 

REFER TO 

DEFENSE LOGISTICS AGENCY 

HEADQUARTERS 

8725 JOHN J. KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 2206Q-6221 

April 23, 2013 

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) MEMBERS 

SUBJECT: Approved Defense Logistics Management System (DLMS) Change (ADC) 1054, 

·Intra-DLA Revisions to Procedures and DLMS 945A Materiel Release Advice, 

Denial Management Code for Credit to Commercial Venture (CV) Contract 

Associated with DLA Disposition Services under Reutilization Business Integration 

(RBD (Supply/MILSTRIP/MILSTRAP) 

The attached change to Defense Logistics Manual (DLM) 4000.25, DLMS, and DLM 

4000.25-2, Military Standard Transaction Reporting and Accountability Procedures 

(MILSTRAP), is approved for immediate intra-DLA implementation. DLA Supply PRC 

representatives are required to actively monitor for implementation of this ADC and provide 

implementation dates when they become available. 

Addressees may direct questions to Ms. Ellen Hilert, DOD MILSTRIP Administrator, 703-

767-0676 or DSN 427-0676, e-mail: ellen.hilert@dla.mil or Ms. Heidi Daverede, DOD 

MILSTRIP Alternate, 703-767-5111 ; DSN 427-5111 , e-mail: heidi.daverede@dla.mil. Others 

may direct questions to their Service or Agency designated Supply PRC representative. 

Attachment 

As stated 

cc: 

ODASD(SCI) 

Director 

DLA Logistics Management 

Standards Office 

Federal Recycling Program 0 Printed on Recycled Paper 
Page 1 Attachment, ADC 1054

ADC 1054

Intra-DLA Revisions to Procedures and DLMS 945A Materiel Release 

Advice, Denial Management Code for Credit to Commercial Venture (CV) 

Contract Associated with DLA Disposition Services under Reutilization 

Business Integration (RBI) (Supply/MILSTRIP/MILSTRAP)

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Technical POC: DLA Logistics Information Service, LAE 269.961.5748

b. Functional POC: DLA Disposition Services, DB 269.961.4140

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Supply/Inventory Management

b. Primary/Secondary Functional Process: Material Release Order (MRO) Denial

3. REFERENCE:

a. Approved Defense Logistics Management System (DLMS) Change (ADC) 1034, 

Intra-DLA Revision to Procedures to Support DLMS 945A, Materiel Release Advice, 

Cancellation Reason Code and Denial Management Code for Redistribution Orders Associated 

with DLA Disposition Services under Reutilization Business Integration (RBI) 

(Supply/Logistics), dated October 23, 2012

b. DLM 4000.25 DLMS, Volume 2, Chapter 16

c. DLM 4000.25-2, Military Standard Transaction Reporting and Accountability 

Procedures (MILSTRAP), Appendix 2.6 

4. REQUESTED CHANGE(S):

a. Brief Overview of Change: A new Denial Management Code must be added to the 

DLMS 945A (MILSTRIP Legacy Document Identifier Code (DIC) A6_, that represents a denial 

of an unauthorized Commercial Venture (CV) delivery order line item. Due to the limited 

number of available Management Codes the expanded use of Denial Code W for RBI unique 

requirements is approved.

b. Background:

(1) The DLA Disposition Services is a worldwide presence within the 

Department of Defense, with disposal specialists in 14 foreign countries, two U.S. territories, and 

39 states. DLA Disposition Services’ mission is the execution of disposition solutions for excess 

military property. The Reutilization Business Integration (RBI) project will replace the Disposal 
Page 2 Attachment, ADC 1054

Automated Information System (DAISY) by integrating DLA Disposition Services business 

processes within the DLA enterprise suite of applications, including the Enterprise Business 

System (EBS) for materiel management functions and the Distribution Standard System (DSS) 

for warehousing/distribution functions.

(2) Per Reference 3.b., DLA Disposition Services has a sales contract in place 

with a Commercial Venture (CV) firm to sell DOD surplus property. Normally, DLA 

Disposition Services will identify property categorized for CV and send the DLMS 846C 

Disposition Category Update transaction to the DLA Disposition Services Field Office to initiate 

processing. Upon receipt of the DLMS 846C indicating CV, the Field Office will generate the 

DLMS 846C Disposition Category Update Response transaction to DLA Disposition Services 

confirming or changing the assigned disposition category codes.

(3) If the Controlled Property Verification Office at the Field Office determines 

materiel is not CV eligible, the Disposition Category Update Response transaction will contain 

Disposition Category Code DS (Disposal) instead of SL (Sales), as well as a disposition category 

change reject reason code, as published in DLA Disposition Services 4160.14, reflecting the data 

characteristic or reason the item will not be released to the CV contract. DLA Disposition 

Services will in turn send the updated DLMS 846C to the Field Office. The reject reason code 

will cause the Field Office to remove the property from the CV holding area at the warehouse 

and allow the item to be processed through ultimate disposal.

(4) In limited situations, where a delivery order is released to the Field Office 

listing Disposal Turn-In Documents (DTID) to issue/ship to a CV firm, and a subsequent 

Reutilization/Transfer/Donation (RTD) system order is received for DTID(s) on that delivery 

order prior to shipment to the CV firm, a DLMS 945A Materiel Release Denial (MILSTRIP 

legacy DIC A6A/A6B/A61/A62) needs to be sent to DLA Disposition Services to remove the 

item from the delivery order and generate a systemic credit for that delivery order. A new denial 

management code for this scenario is required so that sales personnel at the DLA Disposition 

Services Field Offices have the ability to properly close-out a pick requirement for property that 

appears on the CV delivery order that does not qualify for issuing to CV, and expedite the denial 

with a systematic credit to the CV firm.

c. Describe Approved Change in Detail: Add Denial Management Code W –

Unauthorized Commercial Venture Denial. For intra-DLA Disposition Services use only to 

indicate that the Field Office will not ship the DTID originally designated as an authorized CV. 

The Field Office will adjust the pick requirement for the CV firm to exclude the unauthorized 

CV item. DLA Disposition Services will create a systemic credit for the CV firm 

documentation.

d. Revisions to DLM 4000.25 Manuals: 

(1) DLM 4000.25-2 MILSTRAP, Appendix 2.6 Management Codes, Paragraph 

AP2.6.2 Issue Related Transactions. See Enclosure 1.
Page 3 Attachment, ADC 1054

(2) DLM 4000.25 DLMS, Volume 2 Supply, Chapter 16, add new paragraph 

C16.6.8.3.2.1.3.

C16.6.8.3.2.1.3. Use of DLMS 945A Materiel Release Denial for Unauthorized CV Materiel. 

In limited situations, where a CV delivery order is released to the DLA Disposition Services 

Field Office listing DTIDs to issue/ship to a CV firm, and a subsequent mission essential RTD 

order is received for DTID(s) on that delivery order prior to shipment to the CV firm, a DLMS 

945A Materiel Release Denial (MILSTRIP legacy DIC A6A/A6B/A61/A62) citing Denial 

Management Code W needs to be sent to DLA Disposition Services to remove the item from 

the delivery order and generate a systemic credit for that delivery order. Sales personnel at the 

DLA Disposition Services Field Offices will then have the ability to properly close-out a pick 

requirement for property that appears on the CV delivery order that does not qualify for 

issuing to CV and expedite the denial with a systematic credit to the CV firm. 

e. Approved Transaction Flow: No new transactions or routing rules are required.

f. Alternatives: Identify a current denial management code that is not currently used by 

RBI EBS that is appropriate for this specific situation.

5. REASON FOR CHANGE: Currently available denial management codes on the DLMS 

945A/document identifier code A6_ and cancellation reason codes on the DLMS 

945A/document identifier code AG6 are not appropriate for use in this specific situation. Current 

codes do not create a credit to the CV firm, so they are billed for property that never should have 

been on the delivery order in the first place. The new denial management code will ensure in 

systematic fashion that both a credit to the CV documentation is generated and the property is 

not put on a subsequent delivery order.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: DLA Disposition Services will be able to credit the CV firm for 

property in a quick, efficient, and systematic method.

b. Disadvantages: Updating the DLMS 945A Materiel Release Denial transaction will 

require minor coding changes in the RBI system suite (including DSS and EBS) to accommodate 

the mapping and processing of the new denial management code.

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Authorized for immediate 

implementation.

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: Cost savings calculated at 76 hours a week for 

Sales Office and Site Personnel at an average of $30/hour, 52 weeks a year for a total cost of 

$118,560 a year in labor dollars to do causative research and manual intervention.

9. IMPACT:

a. New DLMS Data Elements: No new DLMS data elements required.
Page 4 Attachment, ADC 1054

b. Changes to DLMS Data Elements: Add new Denial Management Code W to 

Logistics Qualifier 84. See Enclosure 2.

c. Automated Information Systems (AIS): EBS and DSS will require minor coding 

changes to properly map and process the new denial management code.

d. DLA Transaction Services: DLA Transaction Services must update the mapping for 

the DLMS 945A to reflect the new denial management code (or expanded use of 'W').

e. Non-DLA Logistics Management Standards Publications: N/A
Enclosure 1

ADC 1054

Page 1

ENCLOSURE 1

1. Update DLM 4000.25-2 MILSTRAP, Appendix 2.6, to add new definition and DIC condition 

for Management Code W. Apply administrative fix to footnote citations for Management Code 

W (DIC A4_ and DIC D7_) to correct transposition error. (See changes in red, bold, italics)

“AP2.6.2. ISSUE RELATED TRANSACTIONS. Management codes are assigned for use in 

MILSTRAP issue related transactions (DIC D7_ Issues, DG_ Backorders, and DHA Demands) 

and MILSTRIP transactions (DIC Code A4_ Referral Orders, A5_ Materiel/Disposal Release 

Orders, A6_ Materiel/Disposal Release Denials, ACJ Disposal Release Cancellations, AE6 

Supply status, AEJ Disposal Supply Status, AFJ Disposal Release Follow-ups, AGJ Reply to 

Disposal Release Cancellations, AKJ Disposal Release Cancellation Follow-ups, ARJ, ARK, and 

ARL Deposal Release Confirmations), and related release documentation (when applicable), as 

indicated below: 

CODE APPLICABLE DIC EXPLANATION

W A6A, A6B, A61, A621 Unauthorized Commercial Venture (CV) Denial. For 

intra-DLA Disposition Services use to indicate that a 

delivery order line item is not authorized for processing 

as a Commercial Venture and credit must be provided 

to the Commercial Venture firm.

W AE6, A4_2

A6_3, D7_4

Denied. Cannot identify DoDAAC/MAPAC of 

designated materiel recipient.

W All other DICs Reserved for future DoD assignment.

 1 See ADC 1054, 2 Authorized for use only in intra-Navy referral orders. 3 Excludes intra-DLA Disposition Services A6A, A6B, A61, and A62 denial transactions in support of 

Commercial Venture actions.

4 Authorized for use only in intra-Navy D7_ Issue transaction reversals and in D7_ Issue transaction reversals 

between Navy Specialized Support Points and DLA.
Enclosure 2

ADC 1054

Page 1

ENCLOSURE 2

1. Add new Management Code W to Table 84. (See changes in red, bold, italics).

NAME: Management Code 

ALIAS: Management Code 

DEFINITION:

Provides supplemental data not indicated through the transaction 

coding structure. When a situation exists which is not covered by a 

code, the Component managing the distribution system may 

assign codes a through l (except i) and other codes as specified 

below, and may prescribe their entry in appropriate transactions. 

REMARKS:

This master table consists of six (6) table sub-sets as follows: table 

84-1 - DLSS/DLMS requisition related transactions; table 84-2 -

DLSS/DLMS receipt related transactions; table 84-3 -

DLSS/DLMS issue related transactions; table 84-4 - DLSS/DLMS 

gain/loss related transactions; table 84-5 - DLSS/DLMS physical 

inventory related transactions; table 84-6 - DLSS/DLMS 

information transactions. (Note: all DLSS DIC are in parentheses). 

SOURCE: Defense Logistics Management System (DLMS) 

AVAILABLE FROM: Defense Logistics Management Standards Office (DLMSO) 

DATA CODE 

CHARACTERISTICS: TYPE: ID MIN: 0001 MAX: 0001

CODE NAME/DEFINITION EXPLANATION 

W

Unauthorized Commercial Venture (CV) Denial. 

For intra-DLA Disposition Services use to indicate 

that a delivery order line item is not authorized for 

processing as a Commercial Venture and credit 

must be provided to the Commercial Venture firm.

A6A, A6B, A61, A62
Enclosure 2

Page 2 ADC 1054

W Denied. Cannot identify DoDAAC/MAPAC of 

designated materiel recipient.

AE6, A4_ (Authorized for 

use only in intra-Navy 

referral orders), A6_, D7_ 

(Authorized for use only in 

intra-Navy issue reversals 

and issue reversals between 

Navy Specialized Support 

Points and DLA). Excludes 

intra-DLA Disposition 

Services A6A, A6B, A61, 

and A62 denial transactions 

in support of Commercial 

Venture actions.

W Reserved for future DOD assignment ALL OTHER DICs
Enclosure 3

ADC 1054

Page 1

ENCLOSURE 3

Submitter Response/Comment Resolution

1. DLA DLA concurs without comment. Noted.

2. Army No response received.

3. Navy Navy concurs with PDC 1054 and requests 

no changes.

Noted.

4. Air Force AF concurs w/o comments. Noted.

5. Marine Corps Headquarters Marine Corps has reviewed the 

subject PDC and concurs.

Noted.

6. USTRANSCOM USTRANSCOM 'abstains' on the attached 

PDC. There is no known impact to 

USTRANSCOM systems based on this 

change. 

Noted.